here is some news from Reuters

Discussion in 'Jevic Transportation' started by mothertrucker, Jun 25, 2006.

  1. mothertrucker

    mothertrucker Member

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    CHICAGO (Reuters) - Trucking company SCS Transportation Inc. (SCST.O: Quote, Profile, Research) has its work cut out.

    Under pressure from shareholders unhappy about the performance of one of its two units, SCS has been seeking possible buyers for either or both since January.

    But analysts say a sale is difficult as SCS' two businesses don't match and buyers for one won't want the other.

    Advised by investment firm Morgan Keegan, Kansas City, Missouri-based holding company SCS is examining sale options for robust less-than-truckload (LTL) unit Saia and less-than-stellar LTL and truckload hybrid Jevic.

    "(O)ur board is... exploring a range of strategic alternatives to enhance stockholder value," SCS Chief Executive Bert Trucksess said March 2.

    SCS declined to comment further, as did Morgan Keegan while the process is ongoing.

    LTL operators consolidate small loads into a single truck. The LTL market has seen strong growth in recent years amid soaring demand as imports rise. The market is undergoing consolidation, with package delivery companies FedEx Corp. (FDX.N: Quote, Profile, Research) and United Parcel Service Inc. (UPS.N: Quote, Profile, Research) also now active in the LTL market.

    Last week FedEx said it would add to its LTL coverage with the $780 million purchase of long-haul LTL operator Watkins Motor Lines. Continued...

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